State governments across the country are expecting a surge in monthly allocations from the Federal Government following a report that the Federal Account Allocation Committee (FAAC) is preparing to share N1.959 trillion, a record in the history of the country.
The amount represents a three-fold increase of the N786.161 billion and N655.93 billion shared in the months of May and June respectively.
The unprecedented spike providing states with greater fiscal strength to finance development is due to the termination of the fuel subsidy regime which hitherto sucked the country’s revenue and left little for investments in development as well other crucial social sectors, including health and education.
It is also due to early steps taken by the Tinubu-administration to plug financial leakages and reorganize government spending to prioritize investments in development and other productive ventures.
The three tiers of government — Federal, State and Local Government — will share the record sum after a FAAC meeting scheduled to hold today in Abuja, the country’s capital.
The positive development prompted calls from Nigerians to governors to complement the FG’s effort to reposition the country for growth by contributing to the efforts to cushion the effects of the fuel subsidy removal on the people, alongside moves to boost food production and supply.